Oil prices continued their upward trajectory in Asian trading hours on Tuesday as renewed hostilities between the United States and Iran rekindled concerns about potential long-lasting interruptions to energy shipments through the Strait of Hormuz.
As of 20:20 ET (00:20 GMT), Brent Oil Futures expiring in November were trading 0.7% higher at $91.08 per barrel. West Texas Intermediate (WTI) crude futures rose 1% to $86.60 per barrel. Those moves followed stronger gains in the previous session, when Brent futures climbed 3% and WTI futures jumped 3.6%.
The immediate escalation began after U.S. forces struck Iranian military sites on Larak Island, ending what had been a weeks-long pause in direct exchanges of fire. Iran responded by launching missiles at U.S. military facilities in Jordan, an action that prompted U.S. President Donald Trump to promise a forceful reply and revived market worries that the conflict could further impede shipping through the Strait of Hormuz.
The Strait of Hormuz remains the focal point for traders and shippers because it serves as a vital export corridor for crude oil and refined products from major producers in the Middle East. Adding to anxieties about commercial navigation, the United Kingdom Maritime Trade Operations agency issued a warning that a tanker was struck by three unidentified projectiles on Monday while exiting the strait.
Supply-side factors have compounded geopolitical risk as drivers of market sentiment. While OPEC+ approved an additional production quota increase of about 188,000 barrels per day from September, completing its planned rollback of earlier voluntary cuts, concerns over overall availability of refined fuels and crude supplies have not fully eased.
Russia's decision over the weekend to extend a diesel export ban until Sept. 30 contributed to those worries about refined product availability. At the same time, President Trump said that oil secured under a recently announced deal with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has been drawn down in recent years and stood at about 290 million barrels as of Aug. 21 - a level described as near its lowest in 44 years.
Market participants note it remains unclear how quickly the Venezuelan agreement could convert into additional crude flows that would affect U.S. inventories or wider market balances. Until such supplies materialize or tensions around the Strait of Hormuz abate, traders are likely to remain attentive to both geopolitical developments and policy actions that influence crude and refined product availability.
Contextual note: This report focuses on market movements, recent military exchanges and supply-side developments that are influencing oil prices and shipping risk assessments.